Changing Change Healthcare

Case Study: Scaled Agile Transformation at Change Healthcare Technology Enabled Services (TES)
This case study reflects work led by Michael Renna, Founder of Alacient, during his full-time tenure as Executive Director of Technology at Change Healthcare Technology Enabled Services. The transformation was executed in partnership with CHC leadership and a team of SPCs and showcases the strategic and operational impact of Scaled Agile practices when applied at enterprise scale.
Background
Change Healthcare, following its merger with McKesson Technology Solutions, became one of America’s largest independent healthcare technology companies, serving 5,500 hospitals and over 800,000 clinicians. The Technology Enabled Services (TES) business unit provides critical revenue cycle management and develops internal products to support the company’s revenue streams.
The Challenge
TES faced mounting pressure to deliver value faster in a rapidly evolving healthcare landscape. The Affordable Care Act and increasing payer complexity demanded smarter, more automated systems. However, TES struggled with transparency, aligning IT activities with business strategy, and motivating employees. There was a clear need to rethink development and IT back-office processes to improve efficiency, quality, and employee engagement.
The Solution: SAFe Adoption Led by Michael Renna
Under the leadership of Michael Renna, Executive Director of Technology, TES embarked on a major transformation by adopting the Scaled Agile Framework (SAFe). Key steps included:
- Securing executive buy-in and educating core team members.
- Partnering with CA Technologies for training and tool support.
- Training over 200 employees in SAFe, with 36 leaders certified within six months.
- Rolling out agile practices across all technology teams, including leadership, who modeled agile behaviors as a scrum team.
- Implementing Big Room Planning to foster collaboration and dependency management.
Michael Renna’s leadership was pivotal in:
- Directing SAFe adoption across TES.
- Elevating release predictability from 68% to 96% in just six months.
- Leading a two-year agile based infrastructure transition that safeguarded $1B in annual revenue by modernizing and migrating over 100 platforms and 1,500 servers.
- Driving a cloud migration to Microsoft Azure, introducing DevOps and security practices, and reducing cloud costs by 25–30%.
- Streamlining the support of 50+ live systems, ensuring compliance and reliability for 32,000 users and $15B in transactions.
Results and Impact
The SAFe transformation delivered significant, measurable benefits:
- Productivity: Delivery team productivity rose by as much as 25%.
- Release Predictability: Improved from 68% to 96%, enabling faster, more reliable product launches.
- Employee Engagement: Employee happiness increased to 85%, with teams reporting greater motivation and confidence.
- Collaboration: Big Room Planning and tools like CA Agile Central and FlowDock enhanced transparency, trust, and cross-team synergy.
- Business Outcomes: The transformation enabled TES to drive new revenue growth, make smarter decisions, and improve competitive advantage. The organization could scale teams and handle increased work capacity through strategic outsourcing.
- Cost Efficiency: Cloud migration and agile practices led to a 25–30% reduction in cloud costs.
Key Success Factors
- Leadership: Michael Renna’s vision and hands-on leadership were critical in aligning technology transformation with business strategy and in fostering a culture of continuous improvement.
- Comprehensive Training: Broad-based SAFe training ensured that agile principles were deeply embedded across all teams.
- Cultural Shift: The transformation was not just about process but about people—building trust, transparency, and a sense of shared purpose.
Conclusion
The SAFe adoption at Change Healthcare TES, led by Michael Renna, stands as a model for large-scale agile transformation in healthcare technology. The initiative delivered measurable improvements in productivity, predictability, employee engagement, and business outcomes, demonstrating the power of strong leadership and a holistic approach to change.